Society & Lifestyle

Meta Vows to Fight as FTC Proposes New Privacy-Related Restrictions

The Federal Trade Commission (FTC) has proposed several restrictive measures against Meta.

Meta Vows to Fight as FTC Proposes New Privacy-Related Restrictions

Source: Pixabay.com

The regulator claims that the company is involved in violations of the 2020 privacy order, which was issued when the firm was called Facebook.

The restrictive measures proposed by the commission provide for the establishment of a complete ban on the monetization of minors’ data and the suspension of the launch of new products and services. The relevant information is contained in the press release of the FTC, which was published last Wednesday, May 3.

The company also offered to extend compliance to any companies which Meta absorbs. Another potential measure of the regulator is to limit the firm’s future use of facial recognition technology. In this case, it is also proposed to tighten the existing provisions of the privacy program from the 2020 order.

Instagram Facebook, WhatsApp, Oculus, and other meta-services may be affected by the proposed measures.

Samuel Levin, director of the FTC’s Consumer Protection Bureau, says that Facebook has repeatedly broken promises regarding privacy. He noted that due to the reckless actions of the company, young users were at risk. In his opinion, the company should be held responsible for this.

A Meta representative said that the FTC’s decision, which has not yet been implemented in a practical sense, is a political stunt. He stressed that for three years the company had been constantly interacting with the regulator about the agreement, but at the same time, the commission did not discuss claims concerning confidentiality issues. The Meta statement also reproaches the FTC for trying to usurp Congress’ authority to set industry-wide standards.

The 2020 privacy order followed the FTC’s investigation into Facebook’s alleged violation of the 2012 consent decree, following which the company committed to ensuring transparency in the data use process.

In its press release, the FTC claims that Meta failed to fully comply with the order. The Commission emphasizes that the company has not eliminated the shortcomings in the privacy program. The regulator also claims that the firm provided application developers with access to users’ personal information, although it promised not to do so. Another claim of the FTC is the distortion of parental control in the Messenger Kids product.

The FTC said in a press release that the regulator asked Meta to respond within 30 days. It is also indicated that the commission is starting proceedings on the issue of the charges.

Meta said in a statement that FTC Chairwoman Lina Khan’s insistence on using any measures against American businesses has reached a new low. The company claims that it has spent huge amounts of money to create and implement an advanced privacy program following the terms of the agreement with the regulator. Meta also stated its readiness to combat the proposed restrictions. The company expects to win in this process.

As we have reported earlier, Meta Says Generative AI and Metaverse to Evolve Together.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.